After World Liberty Financial took the step of
blacklisting Tron’s founder, Justin Sun’s significant holding of 595.109 million WLFI tokens, the company’s own token has
experienced a notable recovery.
Sun stated,
“As an early and substantial investor in World Liberty Financials, I have provided not just funds, but also my
faith and backing for the project’s future potential. My intention has consistently been to progress in tandem
with the team and community, working together to establish a robust and flourishing WLF ecosystem.However, during operational activities, my tokens were frozen without reasonable justification.”
Data observed by *CryptoSlate* indicates that the value of WLFI has climbed by approximately 4% in the past day,
reaching $0.18754, after hitting a record low of $0.1632. This increase in price has resulted in an approximate
$500 million surge in the project’s market capitalization, which currently stands at $4.6 billion.
CoinGlass data reveals that traders who were betting on
WLFI experienced losses of $17 million due to the considerable volatility in the digital asset’s price.
Furthermore, WLFI’s recent price surge has propelled the token’s open interest volume upwards by 50%, reaching $7.2
billion at the present time.
These developments signify a marked turnaround for a digital asset that has diminished by roughly 70% in value since
it began trading on September 1st.
Sun vs WLFI
On September 4th, the WLFI team added
a wallet address controlled by Sun to a blocklist, which contained 595.109 million WLFI tokens valued at
nearly $104 million.
According to information from Onchain Lens, the
WLFI team reportedly blocked Sun’s wallet due to accusations that an exchange linked to him was employing customer
tokens to artificially lower the asset’s price. These claims remain unverified at the time of this report.
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The speculation began after wallets connected to Sun transferred more than $10 million in WLFI tokens to various
exchanges. Conor Grogan, an executive at Coinbase, highlighted a particular transaction on X, noting:
“A deposit wallet at Binance, linked to Justin Sun, received upwards of 60 million WLFI tokens, valued at $12
million, from HTX yesterday. This 60 million WLFI deposit accounts for about 52.6% of HTX’s total WLFI
holdings, according to my analysis of HTX’s public wallets.”
However, Sun has defended these transactions, describing them as “routine exchange deposit tests involving only
minimal amounts, followed by a distribution of addresses.” He stated:
“No buying or selling occurred, making it impossible for these actions to have any influence on the market.”
Sun criticizes WLFI
In response to these actions, Sun, on September 5th, publicly criticized World Liberty Financial’s decision to block
his tokens, deeming it “unilateral” and “unjustified” in a statement shared via X.
According to his statement, the actions of the
President Donald Trump’s associated crypto venture
infringed upon the “legitimate rights of investors,” while also suggesting that such choices could erode confidence
in the project.
He stated:
“Tokens are to be considered untouchable and sacred—this principle should form the foundation for any
blockchain venture. It is this core value that distinguishes us as more equitable and robust than traditional
financial systems.”
Nansen CEO Alex Svanevik also supported Sun’s position, asserting that the
crypto billionaire was not responsible for the initial decline in WLFI’s price, based on a review of the
transaction timestamps.